One of the more prominent issues for business in the upcoming provincial election will be electricity prices.

For Ontario companies across all economic sectors, stability in hydro prices is critical for maintaining a competitive position against neighbouring Canadian and American jurisdictions.

Two weeks ago, the Association of Major Power Consumers of Ontario released a survey that indicated Ontario industry pays the highest electricity rates in North America.

The Ontario rate, based on 2012 statistics, ranged from 7.6 to 9.4 cents per kilowatt hour, while Quebec was 4.5 cents and Manitoba was 3.6 cents. Rates averaged 5.6 cents in New York, 5.4 cents in the New England states and 3.2 cents in a group of 15 midwestern states that are major competitors of Ontario for manufacturing.

In a recent speech to the Economic Club of Canada in Ottawa, Ontario PC leader Tim Hudak cited the AMPCO report and indicated there is no reason for Ontario prices to be twice as much as Chicago. He also claimed that electricity prices will be a major issue during the next election campaign.

Energy Minister Bob Chiarelli argues that relatively high hydro rates are the result of $31 billion in investments over the past ten years to update what was an unreliable system. Spread over the next 20 years, industrial rates should increase by an average of 2.3 per cent annually.

Chiarelli also noted that a special program has been created for northern Ontario businesses to help lower their costs, along with another initiative that redirects surplus energy to businesses instead of exporting product to neighbouring jurisdictions at low or no cost.

Last week, Ontario NDP leader Andrea Horwath asked Premier Kathleen Wynne to provide a $100 rebate for 4.4 million customers, primarily residential, farmers and small business owners. She also requested an end to all exports of subsidized power to New York and Michigan by removing hydro sales from speculative energy traders.

The NDP proposal follows their earlier requests this winter that the upcoming provincial budget should not contain any new taxes, tolls or fees on families, a criticism of the current government’s plans around new options to pay for transit infrastructure in the Greater Toronto Area.

Adding to the roster of problems at Queen’s Park are recent reports that the extreme temperatures of the past three months are pushing prices higher. The Feb. 1 average of 24.96 cents established a new record.

As you can see, the provincial party leaders know that for all business sectors in Ontario, the hydro portfolio will be a major issue in the next election. And it will be for us here in the Region of Waterloo as well.

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Ian McLean is the president and CEO of the Greater Kitchener Waterloo Chamber of Commerce.